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HCM City gives interest rate subsidy for bus developers
2011-0719
HCMC’s government has decided to give an interest rate subsidy of 5% annually for seven years for enterprises developing bus services in the 2011-2013 period.
Phung Dang Hai, general director of HCMC Transport Cooperative, told the Daily that only a few qualified cooperatives can qualify for the loans to invest in bus services. The city earlier gave subsidies of 3%.
Most transport cooperatives, especially small ones, are hesitant at the high lending rates of banks as a new bus costs up to VND1.5 billion, Hai said.
Doan Minh Tam, general director of Saigon Passenger Transport Co. Ltd., said many cooperatives still owe money from the city’s investment fund.
Liquidating old buses only helps them to pay debts, so they do not want to carry out more investment projects, Tam said.
The city’s Department of Transport is making a plan to buy 1,680 new buses, including 571 vehicles of 80 seats, 409 with 55 seats and 700 with 40-seat capacity. The plan is expected to cost around VND1.8 trillion.
Phung Dang Hai, general director of HCMC Transport Cooperative, told the Daily that only a few qualified cooperatives can qualify for the loans to invest in bus services. The city earlier gave subsidies of 3%.
Most transport cooperatives, especially small ones, are hesitant at the high lending rates of banks as a new bus costs up to VND1.5 billion, Hai said.
Doan Minh Tam, general director of Saigon Passenger Transport Co. Ltd., said many cooperatives still owe money from the city’s investment fund.
Liquidating old buses only helps them to pay debts, so they do not want to carry out more investment projects, Tam said.
The city’s Department of Transport is making a plan to buy 1,680 new buses, including 571 vehicles of 80 seats, 409 with 55 seats and 700 with 40-seat capacity. The plan is expected to cost around VND1.8 trillion.
Source: SGT
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